PAM. 

MISC. 


/ 


APR  11  W95  *j 

a  - :  wv 


THE 


NEW  MISSION  BUILDING 


OR  THE 


BOARDS  OF 


HOME  and  FOREIGN  MISSIONS 


OF  THE 


PRESBYTERIAN  CM  UIRCM 


IN  THE 


UNITED  STATES  of  AMERICA. 


The  Investment  and  Security  of  Trust  Funds.  The  Legacies  of  Mrs. 
R.  L.  Stuart.  The  Policy  of  the  Church  as  to 

X 

Its  Boards  and  Buildings. 


By  THOS.  McDOUGALL 


CINCINNATI  : 

Elm  Street  Printing  Company. 
1895. 


EXPLANATORY. 


The  purchase  ot  real  estate  on  the  corner  of  Twentieth  street  and 
Fifth  avenue,  New  York  City,  and  the  erection  of  a  large  structure 
thereon  by  the  Boards  of  Home  and  Foreign  Missions,  at  a  cost  of  one 
million,  seven  hundred  and  fifty  thousand  dollars,  involve  many  important 
questions  of  policy,  the  use  of  trust  funds,  and  the  extent  of  the  powers 
of  those  Boards,  worthy  of  the  consideration  of  the  membership  of  the 
Church. 

This  pamphlet  is  published  and  circulated  by  the  writer  for  the  cole 
purpose  of  enabling  the  membership  of  the  Church  to  give  to  the  ques¬ 
tions  raised  by  this  investment,  that  'careful  and  thorough  consideration 
which  will  enable  the  Church  to  determine  its  future  policy  in  regard  to 
the  disposition  of  trust  funds,  and  the  administration  of  the  affairs  of  its 
several  Boards. 

Cincinnati,  O.,  Mar.  12th,  1895. 


To  the  Members  of  the  Presbyterian  Church 

in  the  U.  S.  A. 


Dear  Brethren  : — According  to 
the  reports  made  to  the  last  Gen¬ 
eral  Assembly,  at  Saratoga,  the 
Boards  of  Home  and  Foreign  Mis¬ 
sions  closed  their  fiscal  year  May 
i,  1894,  with  an  aggregate  indebted¬ 
ness  of  $361,243.34,  divided  as  fol¬ 
lows  :  Home  Missions,  $258,645-55; 
Foreign  Missions,  $102,597.79.  The 
Church  is  to  be  congratulated  that  in 
a  time  of  unparalleled  financial  de¬ 
pression,  during  the  fiscal  year  end¬ 
ing  May  1,  1894,  the  contributions 
for  these  two  Boards  reached  the  sum 
of  $1,746,101.76.  The  cause  of 
Christ,  as  represented  in  the  Home 
and  Foreign  Mission  work  of  the 
Presbyterian  Church,  demands  the 
generous  support  of  every  mem¬ 
ber  of  the  Church,  in  order  that  the 
demands  of  the  fields  may  be  met 
with  an  adequate  supply  of  men  and 
money.  Whatever  differences  of 
opinion  may  exist  among  our  people 
should  not,  for  one  moment,  interfere 
with  the  progress  of  the  work,  nor 
with  the  financial  support  which  is 
necessary  to  carry  on  the  operations 
of  the  two  Boards. 

The  members  of  the  Boards,  the 
secretaries  and  other  officials  have  no 
interest  in  the  service  other  than  their 
desire  to  see  the  Kingdom  prosper. 
To  the  best  oftheir  ability,  and  at 


great  personal  sacrifice  to  many  of 
them,  they  seek  the  welfare  of  the 
Church  with  a  fidelity  and  service  that 
merit  the  commendation  of  all. 

It  is  to  be  deeply  regretted  that  so 
much  indebtedness  existed  at  the 
beginning  of  this  fiscal  year.  In  order 
to  its  payment,  and  to  the  raising  of 
the  funds  necessary  for  the  work  of 
the  Boards,  contributions  must  be 
increased  over  those  of  last  year. 

THE  NEW  MISSION  HOME. 

One  of  the  subjects  which  occupied 
the  attention  of  the  last  General  As¬ 
sembly  was  the  erection  of  a  new 
mission  home  on  the  site  purchased 
in  1893  by  the  two  Boards  on  Twen¬ 
tieth  street  and  Fifth  avenue. 

The  dimensions  of  this  lot  are  92 
feet  on  Fifth  avenue,  and  198  feet  on 
Twentieth  street,  it  having  been  pur¬ 
chased  from  the  estate  of  Mrs.  R.  L. 
Stuart,  April  15,  1893,  °f  which  es¬ 
tate  Messrs.  George  C.  Williams  and 
John  S.  Kennedy  are  executors.  The 
price  paid  for  the  lot  was  $670,000, 
and  was  paid  as  follows : 

From  Legacy  of  Mrs.  R.  L.  Stuart  -  $315,000.00* 
Gift  from  Mr.  John  S.  Kennedy  -  15,000.00. 

Loan,  on  the  property,  at  int’st  340,000.00. 

THE  PRESENT  MISSION  HOME. 

The  premises  now  occupied  by 
these  two  Boards  on  Fifth  avenue  and 
Twelfth  street,  eight  blocks  distant 


—  4  — 


from  the  new  site,  front  13 1  feet  on 
Fifth  avenue,  103  feet  of  which  is  150 
feet  deep  on  Twelfth  street,  and  the 
remaining  28  feet  is  103  feet  deep. 
This  site  is  larger  in  area  than  the 
new  one  on  Twentieth  street  and 
Fifth  avenue.  The  rear  part  of  the 
present  premises,  fronting  about  sixty 
feet  on  Twelfth  street,  is  vacant. 

On  the  new  site,  a  building  not  less 
than  ten  stories  in  height  is  in  course 
of  erection,  at  a  cost  of  not  less  than 
one  million  dollars  ($1,000,000);  so 
that  when  the  building  is  completed, 
the  site  and  building  will  represent  an 
investment  of  at  least  one  million, 
seven  hundred  and  fifty  thousand 
dollars  ($1,750,000). 

HISTORICAL. 

The  site  now  occupied  by  the  two 
Boards,  at  the  corner  of  Twelfth 
street  and  Fifth  avenue,  was  acquired 
sometime  in  the  year  1887.  With 
reference  to  the  acquisition  of  that 
site,  and  how  it  was  paid  for,  we  find 
in  the  Minutes  of  the  Assembly  for 
1888,  page  21,  the  following,  from  the 
report  of  the  Board  of  Home  Missions 
to  the  General  Assembly : 

“This  year  has  been  made  especially  mem¬ 
orable  by  the  Boards’  acquisition  and  occu¬ 
pation  of  a  home  of  their  own.  A  long  tried 
and  generous  friend  of  both  Boards,  the  late 
Mr.  R.  L.  Kennedy,  had  for  years  had  his 
eye  on  these  premises  as  being,  in  view  of 
the  site,  the  accommodations  and  associa¬ 
tions  of  an  honored  Presbyterian  name, 
singularly  well  suited  for  a  Presbyterian 
House.  Accordingly,  at  his  instance,  the 
heirs  of  the  Lenox  estate  offered  this  prop¬ 
erty  to  the  two  Boards  for  $250,000,  a  price 
judged  by  experts  so  low  as  to  involve  a 
virtual  gift  of  a  large  amount  towards  the 
purchase  by  the  heirs  themselves.  Miss  H. 
A.  Lenox,  to  whose  estate  this  property 
belonged,  had  bequeathed  to  the  Home  and 
Foreign  Boards  each  $50,000.  Mr.  Ken¬ 
nedy,  besides  arranging  these  most  favor¬ 


able  terms,  gave  $50,000  towards  the  pur 
chase  money, and  added  $20,000  for  the 
necessary  alterations  and  repairs.  Thus 
two-thirds  or  three-fourths  of  the  means  for 
this  purchase  came  from  members  of  th*e 
family  connection  owning  the  property.” 

And  from  the  report  of  the  Board 
of  Foreign  Missions,  the  same 
Minutes,  page  79,  the  following : 

“We  congratulate  the  Board  upon  its 
entrance  into  the  new  quarters,  53  Fifth  Ave. 
To  Mr.  Robert  Lenox  Kennedy’s  wise  fore¬ 
thought  and  princely  munificence  the 
change  is  largely  due.  The  Mission  House, 
123  Center  St.  has  grown  historic,  and  was 
hallowed  by  precious  memories,  but  who 
shall  forecast  the  record  of  this  latter  house? 
What  if  its  unfolding  history  should  bring 
to  the  waiting  eyes  of  the  Church  the  glories 
of  millennial  morning?” 

The  General  Assembly  of  the  same 
year,  as  appears  on  page  67,  of  its 
minutes,  adopted  the  following  reso¬ 
lution  : 

“Resolved,  that  this  Assembly  hereby  ex¬ 
presses  its  grateful  appreciation  of  the  Chris¬ 
tian  generosity  of  the  heirs  of  the  Lenox 
estate,  and  of  Mr.  Robert  Lenox  Kennedy, 
for  their  munificent  aid  in  securing  a  house 
so  suitable  as  a  center  of  our  denominational 
work,  and  devoutly  trusts  that  this  building 
may  stand  the  next  century  through  as  a 
monument  to  the  wise  and  loving  liberality 
of  those  who  gave  it.” 

THE  OLD  AND  THE  NEW. 

The  present  premises,  the  historic 
Lenox  homestead,  which  were  pur¬ 
chased  in  1887,  less  than  eight  years 
ago,  are  to  be  sold,  and  the  proceeds 
of  the  sale  invested  in  this  new  site 
and  structure,  only  eight  blocks  dis¬ 
tant  on  the  same  street.  The  present 
home  is  without  debt  or  incumbrance, 
and  the  ground  is  of  ample  area  for 
the  buildings  necessary  for  the  work 
of  the  Church  for  centuries.  These 
premises,  thus  acquired  from  the 
Lenox  estate,  as  we  have  stated,  are 
to  be  sold,  and  the  proceeds  of  the 
sale  invested  in  the  new  site  and 


—  5  — 


structure,  on  which  there  now  rests  a 

• 

first  mortgage  for  one  million  of  dol¬ 
lars,  as  hereinafter  stated.  The 
money  given  by  Mrs.  Henrietta  Lenox, 
and  Mr.  Robert  Lenox  Kennedy, 
and  the  Lenox  heirs,  for  the  purchase 
of  the  property,  was  a  permanent 
gift  to  the  Church.  That  money,  on 
the  sale  of  these  historic  premises,  is 
to  be  invested  in  a  site  and  building, 
mortgaged  as  we  have  stated,  thus 
not  only  selling  the  property  bought 
as  a  permanent  mission  home  for  the 
Church,  but  investing  the  proceeds  in 
a  second  mortgage — a  mortgage  on 
the  equity  of  redemption  of  the  mort¬ 
gagors — whose  security  rests  on  the 
constant  maintenance  of  sufficient  fire 
insurance  policies  in  responsible  com¬ 
panies,  and  which  will  be  respon¬ 
sible  in  the  event  of  the  destruc¬ 
tion  of  the  building.  The  site 
on  which  the  new  building  is  being 
erected  was  purchased  by  the  two 
Boards,  April  15,  1893,  for  the  sum 
of  $670,000,  and  the  purchase  com¬ 
pleted  before  any  action  was  taken  on 
the  subject  by  the  General  As- 
semblv. 

4/ 

The  site  thus  purchased  at  such  an 
enormous  cost,  was  purchased  when 
the  Boards  had  not  received  any 
money  especially  given  for  that  pur¬ 
pose,  except  the  $15,000  given 
by  Mr.  John  S.  Kennedy;  and  the 
erection  of  a  building  thereon  at  a 
cost  of  over  a  million  of  dollars,  in 
addition  to  the  cost  of  the  site,  is 
being  proceeded  with  when  the  Boards 
are  in  debt  hundreds  of  thousands  of 
dollars  for  current  work,  and  are  in 
debt  $340,000.00  for  the  site,  and 
have  not  received  any  gifts  so  far 


as  we  know,  for  such  a  building.  One 
million  dollars  has  recently  been  bor¬ 
rowed  by  the  Board  from  the  Sea¬ 
men’s  Bank  for  Savings,  for  the  new 
enterprise,  the  site  and  building  being 
mortgaged  to  secure  the  money  thus 
borrowed. 

CREDIT  ;  NOT  FUNDS. 

In  other  words,  the  Boards  of  Home 
and  Foreign  Missions,  being  mere 
agencies  of  the  Church  for  the  ad¬ 
ministration  of  certain  specific  mission 
work,  and  the  distribution  of  her 
funds  contributed  for  that  purpose, 
and  being  in  possession  of  premises 
owned  in  fee  simple,  and  unencum¬ 
bered  by  debt,  and  having  vacant 
ground  sufficient  to  erect  any  needed 
buildings  for  the  work  of  the  Boards, 
and  having  no  money  given  them  for 
a  new  building,  go  into  the  real  estate 
market  and  mainly  on  credit  buy  a  plot 
of  ground  on  the  same  street,  at  a  cost 
of  $670,000,  and  proceed  to  erect 
thereon  a  building  at  a  cost  of  over  a 
million  of  dollars  in  addition.  The 
Church  has  never  known  in  her  ex¬ 
perience,  such  a  gigantic  real  estate 
investment,  and  that  very  largely  on 
borrowed  money.  And  this  invest¬ 
ment  has  been  made  to  provide  the 
necessary  room  for  the  scretaries 
and  their  clerks,  in  the  work  of  dis¬ 
tributing  the  funds  contributed  by  the 
Church,  and  carrying  on  the  Church’s 
work  of  Home  and  Foreign  Missions. 

According  to  the  statement  issued 
by  the  two  Boards,  the  reasons  given 
for  the  purchase  of  the  new  site,  the 
erection  of  the  new  building,  and  the 
sale  of  the  historic  Lenox  homestead, 
are  as  follows  : 


THE  REASONS  AS  GIVEN  BY  THE 
BOARDS. 

“THE  NEW  PRESBYTERIAN  BUILDING.  The 
Boards  of  Home  and  Foreign  Missions  are 
about  to  erect  on  the  property  purchased  in 
1893,  on  the  corner  of  Twentieth  street  and 
Fifth  avenue,  a  large  building  for  their  own 
needs,  with  additional  office  accommoda¬ 
tions  which  will  be  rented  to  suitable  ten¬ 
ants. 

This  project  represents  the  result  of  a 
careful  business  consideration  of  the  whole 
problem  of  office  accommodation.  Although 
planned  on  a  large  scale  it  has  been  con¬ 
sidered  in  every  detail,  with  a  view  to  prac¬ 
tical  economy. 

Many  years  ago  friends  of  the  Board  of 
Foreign  Missions  secured  a  building  at  23 
Center  street,  which  gave  more  than  ampla 
accommodations  for  its  work,  and  some  por¬ 
tions  were  rented  for  secular  business.  The 
building  was  largely  the  gift  of  a  few  friends, 
among  whom  was  the  late  James  Lenox, 
and  it  was  confidently  believed  that  the 
structure  would  constitute  a  lasting  monu¬ 
ment  to  their  liberality.  With  the  Reunion 
of  the  Presbyterian  Church  in  1870,  the 
three  great  Boards  of  the  Church  in  New 
York  were  placed  together  in  this  building, 
but  it  became  necessary  for  the  Board  of 
Home  Missions  to  rent  other  quarters,  and 
the  two  growing  organizations  for  women’s 
work  in  Missions  were  obliged  to  find  ac¬ 
commodations  elsewhere.  Many  projects  for 
securing  a  larger  Mission  House  were  from 
time  to  time  discussed,  but  for  some  years 
no  suitable  place  was  found. 

But  early  in  1888,  through  the  efforts  and 
generosity  of  the  late  Robert  Lenox  Ken¬ 
nedy,  the  Boards  moved  to  the  present 
building  at  53  Fifth  avenue,  the  late  home 
of  Mr.  James  Lenox  and  his  two  sisters, 
whose  large  gifts  to  the  Boards  for  many 
years  are  still  remembered.  The  heirs  of 
Mrs.  Henrietta  Lenox,  who  survived  her 
brother,  generously  sold  this  property  to  the 
Boards  for  $250,000,  a  price  less  than  its 
actual  value.  It  was  paid  for  by  a  gift  of 
$50,000,  from  Mr.  Robert  Lenox  Kennedy, 
Miss  Henrietta  Lenox’s  legacy  of  $50,000, 
to  the  Home  Board,  $70,000,  proceeds  of 
the  sale  of  the  Center  street  property  by  the 
Foreign  Board,  and  the  balance,  $80,000, 
from  the  permanent  funds  of  the  two  Boards. 
As  in  the  case  of  the  former  building,  it 
was  hoped  that  this  would  provide  commo¬ 
dious  quarters  for  the  Boards  for  many  years 
to  come,  but  the  growth  of  the  work  has 
been  so  great  and  so  rapid  that  another 
change  has  become  imperative. 

The  need  of  more  room  for  the  three 
Boards  of  the  Church  and  the  two  great  de¬ 


partments  of  Women’s  Work  occupying  the 
the  present  building,  also  for  the  various 
Missionary  gatherings  which  center  there, 
is  already  urgent.  The  house  having  been 
built  as  a  private  dwelling,  or  rather  two 
dwellings  (now  separated  by  what  is  known 
as  Lenox  Hall),  is  ill-adapted  for  office  use. 
In  many  rooms  there  is  positive  discomfort, 
with  a  necessary  lack  of  highest  efficiency. 
The  question  of  alteration  has  arisen  from 
time  to  time,  but  the  present  building  is  so 
constructed  as  not  to  admit  of  change  on 
any  wise  and  comprehensive  plan.  Mean¬ 
while,  the  structure  does  not  admit  of  busi¬ 
ness  rentals  as  a  source  of  income.  The  un¬ 
occupied  ground  is  entirely  unremunerative, 
and  the  plot  as  a  whole  can  only  be  econom¬ 
ically  utilized  by  the  removal  of  the  present 
structure  and  the  erection  of  entirely  new 
buildings. 

This  step  is  therefore  in  the  interest  of 
wise  economy.  In  a  city  where  prop¬ 
erty  commands  the  high  prices  which  rule 
in  New  York,  it  is  waste  to  occupy  so  much 
land  as  these  Boards  own,  without  utilizing 
its  possibilities  for  a  large  income  from  rent¬ 
als.  The  Bible  and  Tract  Socities  and  the 
Methodist  Episcopal  Church  have  for  years 
acted  upon  this  principle.  The  Tract  Soci¬ 
ety  is  about  to  utilize  its  valuable  property 
with  a  new  office  building.  In  the  present 
quarters,  with  so  much  unavailable  space  in¬ 
side  and  outside  the  building,  and  taking 
into  view  the  value  of  land  in  this  part  of 
the  city,  the  Boards  are  living  at  an  extrav¬ 
agant  rental  which  cannot  be  justified  on 
sound  business  principles.  Alterations  in 
the  present  property  would  merely  increase 
present  expenses  with  no  adequate  return  - 
compared  with  the  amount  expended.  Te> 
remove  the  present  structure  and  build  on 
the  present  site  would  involve  great  incon¬ 
venience  and  expense  for  at  least  two  years. 

When  this  question  was  pending,  the 
death  of  Mrs.  Robert  Stuart  brought  to  the 
Boards  legacies  of  over  $500,000.  It  was 
definitely  known  that  Mrs.  Stuart  had  ex¬ 
pressed  a  desire  that  a  large  part  of  her  gift 
should  be  retained  as  a  permanent  invest¬ 
ment,  and  was  only  deterred  from  fixing  the 
amount  by  the  advice  of  her  executor.  Of 
her  legacies  the  Boards  used  $125,000  in  cur¬ 
rent  work,  and  the  remainder  has  been 
availed  of  in  part  payment  for  the  property 
corner  Twentieth  street  and  Fifth  avenue. 

In  selecting  this  location  rather  than  re¬ 
building  on  the  present  site,  the  Boards 
acted  through  special  committees,  and  after 
consultation  with  the  best  real  estate  ex¬ 
perts  of  the  city,  who  pronounced  the  prop¬ 
erty  at  Twentieth  street  and  Fifth  avenue 
of  exceptional  value  for  rental  purposes. 


and  likely  to  produce  larger  revenue  for 
many  years  than  the  property  corner  of 
Twelfth  street.  A  special  committee  of 
both  Boards,  with  Mr.  John  S.  Kennedy  as 
Chairman,  has  in  charge  the  development 
of  the  details.  On  its  financial  side  this  move¬ 
ment  rests  upon  the  united  judgment  of 
sagacious  business  men  to  whom  the  Boards 
and  the  Church  have  intrusted  the  manage¬ 
ment  of  permanently  invested  funds.  It  is 
wholly  distinct  from  the  management  of 
current  outlay  for  missionary  work.  No 
part  of  the  moneys  contributed  for  the  mis¬ 
sionary  work  of  the  Boards  will  be  diverted 
for  use  in  connection  with  this  project.  The 
necessary  funds  will  be  provided  from  the 
legacies  of  Mrs.  Stuart,  from  funds  of  the 
Boards  which  must  be  permanently  in¬ 
vested,  and  from  the  proceeds  of  the 
sale  of  the  present  property  at  Twelfth 
street  and  Fifth  avenue  ;  any  balance  above 
these  amounts  which  may  be  needed  will 
be  secured  by  a  mortgage  on  the  property 
upon  which  the  building  is  to  be  erected. 
The  rentals  will  provide  the  necessary 
interest  and  a  sinking  fund  to  extinguish 
the  principal  of  the  mortgage,  and  in  time 
return  a  revenue  which  will  help  t©  meet 
the  expense  of  administration. 

HOW  THE  BOARDS  ACTED. 

The  date  of  the  conveyance  of  the 
new  site  to  the  two  Boards  is  April  15, 
1893.  The  property  having  thus  been 
purchased,  on  March  27th,  1894,  ac¬ 
cording  to  the  statement  prepared  by 
the  Boards,  resolutions  were  adopted 
by  the  Board  of  Home  Missions  as 
follows : 

Resolved,  That  the  Building  Cemmittee 
of  the  Board  be,  and  it  hereby  is  author¬ 
ized  and  directed  to  proceed  jointly  with 
the  Board  of  Foreign  Missions,  or  other¬ 
wise,  as  it  thinks  best,  with  the  erection  of 
a  building  on  the  Stuart  property,  at  the 
northwest  corner  of  Fifth  avenue  and  Twen¬ 
tieth  street,  belonging  to  the  two  Boards; 
and  for  the  purpose  to  employ  an  architect, 
or  architects,  enter  into  contracts,  and  do 
everything  necessary  for  the  complete  con¬ 
struction  and  fitting  up  of  the  building  ;  and 
to  make  all  arrangements  for  obtaining  the 
necessary  money,  including  borrowing, 
either  upon  credit  of  the  board  or  upon 
mortgage,  or  in  any  other  way ;  and 

Resolved,  further,  That  at  any  time, 
upon  the  direction  of  the  building  com¬ 
mittee,  the  proper  officers  of  the  Board 


sign  and  execute  all  necessary  papers  to 
carry  out  the  purpose  of  the  foregoing  reso¬ 
lution,  including  notes,  bonds  and  mort¬ 
gages  ’and  other  obligations,  and  to  affix 
thereto  the  seal  of  the  board. 

As  we  have  already  stated,  the  total 
indebtedness  of  the  Boards  of  Home 
and  Foreign  Missions,  existing  on  the 
1  st  day  of  May,  1894,  for  the  current 
work  of  the  Boards,  was  over  three 
hundred  and  sixty  thousand  dollars. 
In  addition  to  this  sum  the  Boards 
were  then  indebted  on  account  of  the 
purchase  price  of  the  new  site  on  20th 
Street  and  Fifth  avenue,  to  the  amount 
of  three  hundred  and  forty  thousand 
dollars,  making  a  total  indebtedness, 
May  1  st,  1894,  for  current  work,  and 
the  unpaid  purchase  price  of  the  new 
site,  of  over  seven  hundred  thousand 
dollars.  Since  that  day  the  Boards 
have  borrowed  one  million  dollars 
from  the  Seamen’s  Bank  for  Savings, 
and  given  a  mortgage  on  the  new  site 
for  that  amount  to  secure  the  loan, 
which  mortgage  bears  date  the  30th 
day  of  November,  1894. 

TRUST  FUNDS  AND  THEIR  USE. 

It  is  to  be  noted  here  that  in  addi¬ 
tion  to  this  indebtedness,  the  Boards 
had  expended  three  hundred  and 
fifteen  thousand  dollars  of  the  legacies 
of  Mrs.  Stuart  in  part  payment  for  the 
site.  This  money  was  invested  in  the 
site  April  15th,  1893,  while  the  Boards 
have  been  paying  interest  on  their 
debts  for  current  work,  and  as  we 
shall  see  hereafter,  the  whole  amount 
of  the  legacies  of  Mrs.  Stuart  were 
available  for  current  work,  the  Boards 
having  actually  used  one  hundred  and 
twenty-five  thousand  dollars  of  the 
legacies  for  that  purpose. 

Every  dollar  of  the  hundreds  of  thou s- 


—  8 


ands  given  by  Mrs.  Stuari  was  available 
for  the  payment  of  the  salaries  of  home 
and  foreign  missionaries ,  and  could  have 
been  used  for  that  purpose  at  any  time 
since  it  came  into  the  possession  of  the 
Boards ,  and  could  have  been-  used  for 
the  liquidation  of  the  current  indebted¬ 
ness  of  the  Boards.  The  total  amount 
of  the  legacies  of  Mrs.  Stuart  which 
could  have  been  applied  to  the  pay¬ 
ment  of  the  salaries  of  Home  and 
Foreign  Missionaries,  other  than  the 
$125,000  so  used,  is  four  hundred 
and  seventy-five  thousand  dollars, 
and  that  amount  has  been  or  will  be 
permanently  invested  in  this  site  and 
building.  The  payment  of  the  sala¬ 
ries  of  the  Home  and  Foreign  Mis¬ 
sionaries  is  the  first  and  highest  duty 
of  the  Church,  and  all  funds  given  or 
available  for  such  purpose,  should  be 
sacredly  guarded  and  used  to  that 
end. 

POLICY  OF  THE  CHURCH. 

This  investment  on  the  part  of  the 
two  Boards,  and  the  policy  which  dic¬ 
tates  and  controls  it,  raise  a  number 
of  important  questions  which  the  mem¬ 
bership  of  our  Church  ought  to  con¬ 
sider.  God  has  given  large  wealth  to 
some  of  the  members  of  our  Church. 
The  owners  or  stewards  of  large 
wealth,  more  than  ever  recognize  the 
necessity  of  using  it  along  lines  of 
Christian  work,  and  this  is  pre-emi¬ 
nently  an  age  of  liberal  endowment  of 
enterprises  which  commend  them¬ 
selves  to  Christian  people  in  order  to 
advance  the  work  of  the  Church,  and 
to  build  up  the  Kingdom  of  Jesus 
Christ  on  Earth. 

Our  Church  is  face  to  face  with  the 
important  question  of  the  formation  of 


a  policy  touching  the  endowments  of 
her  various  agencies  or  boards,  which 
not  only  merits  careful  and  prayerful 
attention,  but  which  will  tax  the  high¬ 
est  order  of  ability  in  its  solution. 
Such  a  policy  must  be  adopted  and 
adhered  to  as  will  command  the  full 
confidence  of  those  who  have  wealth 
to  commit  to  the  keeping  and  use  of 
the  various  agencies  of  our  Church. 
That  policy  must  insure  the  perma¬ 
nent  application  of  the  gifts  to  the 
purposes  for  which  they  were  given. 

It  is  designed  to  call  attention  to  the 
transactions  described  above  by  which 
these  two  Boards  have  committed  the 
Church  to  the  investment  of  one  and 
three  quarter  millions  of  dollars  in 
providing  a  home  for  her  mission 
work,  and  incurring  in  so  doing  a 
mortgage  debt  of  one  million  dollars, 
for  the  purpose  of  raising  the 
questions  already  referred  to,  which 
can  only  be  solved  by  that  calm  con¬ 
sideration  which  should  be  present  in 
a  friendly  discussion  by  members  of 
the  Church  of  Christ.  Let  us  proceed 
to  examine. 

1.  To  what  extent  have  the 
Boards  of  Home  and  Foreign  Missions 
the  power  to  purchase  real  estate  ? 

2.  What  power  do  they  possess 
to  invest  in  real  estate  funds  given  for 
the  purposes  of  the  Boards  ? 

3.  What  should  be  the  policy  of 
the  Church  in  making  provision  for 
the  premises  necessary  to  carry  on  the 
work  of  her  respective  agencies? 

1. 

TO  WHAT  EXTENT  HAVE  THE  BOARDS 

OF  HOME  AND  FOREIGN  MISSIONS  THE 

POWER  TO  PURCHASE  REAL  ESTATE  ? 

The  Boards  of  Home  and  Foreign 


—  9  — 


Missions  are  civil  corporations  created 
by  the  laws  of  New  York.  Like  all 
corporations  their  powers  are  limited 
by  the  laws  of  the  State  creating  them. 
They  cannot  exercise  any  other 
powers  than  are  expressly  granted  to 
them,  or  are  necessary  to  carry  out 
the  purposes  for  which  they  are 
created.  According  to  the  law  of  the 
State  of  New  York,  such  corporations 
as  the  Boards  of  Home  and  Foreign 
Missions  have  authority  to  acquire 
such  real  estate  as  is  necessary  for  the 
purpose  of  incorporation. 

At  the  time  that  these  two  Boards 
purchased  the  site  on  20th  street  and 
Fifth  avenue,  they  were  the  owners 
and  holders  of  the  present  Mission 
premises  on  the  corner  of  Fifth  ave- 
enue  and  12th  street.  It  can  not  be 
denied  that  the  present  site  on  Fifth 
avenue  and  12th  street  is  amply  suf¬ 
ficient  for  the  purposes  for  which  they 
are  incorporated,  and  had  ample  area 
for  all  the  buildings  necessary  to  carry 
on  the  business  of  the  two  Boards  for 
the  next  two  hundred  years. 

The  moving  cause  for  the  acquisi¬ 
tion  of  the  new  site  was  not  that  the 
present  premises  are  not  large  enough 
for  the  business  of  the  two  Boards,  but 
rather,  as  stated  in  the  circular  of  the 
Boards,  “  that  a  new  structure  erected 
on  the  present  site  would  not  admit 
of  office  rentals  as  a  source  of  income ; 
and  that  in  a  city  where  property  com¬ 
mands  the  high  prices  that  rule  in 
New  York,  it  is  a  waste  to  occupy  so 
much  land  as  these  Boards  own  with¬ 
out  utilizing  its  possibilities  for  a  large 
income  for  rentals.  ”  In  other  words, 
the  site  at  Fifth  avenue  and  20th 
street  would  be  a  better  site  for  rent¬ 


ing  the  unoccupied  portions  of  such  a 
structure  as  the  Boards  desire  to 
erect,  than  the  site  at  Fifth  avenue 
and  1 2th  street;  and  it  would  be 
a  better  investment  of  money  to  locate 
on  a  site  where  large  rentals  can  be 
obtained  from  stores  and  offices,  for 
so  much  of  the  building  as  the  Boards 
do  not  use  for  their  own  purposes. 

WHY  THE  BOARDS  WERE  INCORPO¬ 
RATED. 

It  is  to  be  borne  in  mind,  however, 
that  these  Boards  were  not  incorpo¬ 
rated  for  the  purpose  of  erecting  build¬ 
ings  to  be  rented  as  stores  and  offices. 
Neither  were  they  incorporated  to 
speculate  in  real  estate,  and  to  take 
the  risks  incident  to  all  such  invest¬ 
ments  in  large  cities.  The  question 
arises  whether  such  corporations,  hav¬ 
ing  acquired  and  holding  sufficient 
property  for  their  own  uses,  have 
power  under  the  law  of  the  state  in¬ 
corporating  them,  while  they  still  hold 
that  property,  to  invest  or  speculate 
in  other  property  on  which  to  erect 
buildings,  which  they  propose  to  rent 
for  other  uses  than  their  own.  If 
they  have,  where  is  the  limit  ?  How 
many  buildings  may  they  thus  acquire 
even  without  money  and  solely  on 
credit? 

Of  course  the  only  authority  that 
could  legally  question  the  exercise  of 

that  power  is  the  State  of  New  York 

* 

that  created  the  corporations.  But 
whether  civil  cprporations  created 
solely  for  the  purposes  for  which  our 
Boards  of  Home  and  Foreign  Mis¬ 
sions  were  incorporated,  should  en¬ 
gage  in  any  such  investments  and 
speculations,  even  if  they  have  the 
charter  power  to  do  so,  is  a  wholly 


IO  — 


different  question.  We  presume  that 
these  Boards  before  acting  were  ad¬ 
vised  that  they  possessed  the  legal 
•  authority  under  the  laws  of  the  State 
incorporating  them,  to  hold  and 
acquire  the  property  on  the  corner  of 
20th  street  and  Fifth  avenue,  where 
they  are  erecting  a  million  dollar 
building  with  borrowed  money,  the 
larger  portion  of  which  will  be  occu¬ 
pied,  not  by  themselves,  but  be  rented 
for  stores  and  offices,  just  as  any  other 
investment  in  real  estate  and  build¬ 
ings,  while  at  the  same  time  they  were 
the  owners  of  other  real  estate,  occu¬ 
pied  by  them,  with  ample  area  for  all 
buildings  necessary  for  their  purposes. 

While  all  corporations  should  en¬ 
deavor  to  comply  strictly  with  the 
law  of  their  creation,  and  confine 
themselves  strictly  within  the  powers 
granted  to  them,  corporations  created 
for  religious  purposes  should  be  pre¬ 
eminent  in  their  strict  adherence  to 
the  laws  of  their  creation,  and  the 
powers  vested  in  them  by  the  State. 
They  should,  under  no  circumstances, 
afford  opportunity  to  criticism  on 
those  grounds,  and  certainly  should 
not  so  act  as  to  warrant  the  State 
creating  them  in  taking  action  to  re¬ 
strain  what  may  be  an  abuse  of  cor¬ 
porate  power. 

II. 

WHAT  POWER  DO  THE  BOARDS  POSSESS 
TO  INVEST  IN  REAL  ESTATE,  FUNDS 
GIVEN  FOR  THE  PURPOSES  OF  THE 
BOARDS? 

The  statement  of  the  Boards  as  to 
how  the  necessary  funds  will  be  pro¬ 
vided  is  as  follows : 

“The  necessary  funds  will  be  provided 
from  the  legacies  of  Mrs.  Stuart,  from  funds 


of  the  Boards  which  must  bo  permanently 
invested,  and  from  the  proceeds  of  the  sale 
of  the  present  property  at  12th  street  and 
Fifth  avenue ;  any  balance  above  these 
amounts  that  may  be  needed  will  be  secured 
by  a  mortgage  on  the  property  on  which 
the  building  is  to  be  erected.” 

The  Boards  do  not  give  us  a  de¬ 
tailed  statement  “of  the  funds  of  the 
Boards  which  must  be  permanently 
invested”  that  are  to  be  so  used. 

Whose  funds  and  from  whom  re¬ 
ceived.  Have  the  Boards  the  power 
to  so  use  such  funds  and  if  so,  ought 
they  do  to  so  ?  Will  the  principal  re¬ 
main  permanently  safe  in  such  an 
investment  ? 

The  will  of  Mrs.  R.  L.  Stuart,  by 
which  these  legacies  were  given,  in 
item  24  provided  as  follows: 

“  24th.  I  give,  devise  and  bequeath  one 
equal  one-half  part  of  all  the  rest,  res¬ 
idue  and  remainder  of  my  estate,  real  and 
personal,  to  the  following  named  corpora¬ 
tions  and  institutions :  The  American. 

Bible  Society,  The  Board  of  Foreign  Mis¬ 
sions  of  the  Presbyterian  Church  in  the 
United  States  of  America,  incorporated  by 
an  act  of  the  Legislature  of  the  State  of 
New  York;  The  Board  of  Home  Missions 
of  the  Presbyterian  Church  in  the  United 
States  of  America,  incorporated  by  an  act 
of  the  Legislature  of  the  State  of  New 
York  ;  The  Presbyterian  Hospital  in  the  city 
of  New  York,  situated  on  Madison  avenue- 
and  70th  street  and  71st  street,  incorpo¬ 
rated  by  the  Legislature  of  the  State  of  New 
York.” 

MRS.  STUART’S  LEGACIES. 

The  three  hundred  and  fifteen 
thousand  dollars  used  in  the  purchase 
of  the  site;  the  one  hundred  and 
twenty-five  thousand  dollars  used  by 
the  two  Boards  for  current  needs,  and 
an  estimated  sum  of  one  hundred  and 
sixty  thousand  dollars  yet  to  be  re¬ 
ceived  under  said  legacies,  which  it  is 
proposed  to  use  in  this  investment, 
constitute  as  we  understand  it,  the 
total  amount  of  said  iegacies  to 


II 


the  two  Boards  under  the  will  of 
Mrs.  Stuart.  This  makes  a  total 
from  Mrs.  Stuart’s  estate  of  six  hun¬ 
dred  thousand  dollars  for  Home  and 
Foreign  Missions ;  one  hundred  and 
twenty-five  thousand  dollars  have 
been  used  for  the  current  work 
of  the  Boards,  leaving  four  hun¬ 
dred  and  seventy-five  thousand  dol¬ 
lars  of  the  same  to  be  invested  in 
the  new  building  and  site.  The  money 
thus  given  by  Mrs.  Stuart  was  without 
any  limitation,  restriction,  or  direction, 
so  far  as  her  will  is  concerned.  Every 
dollar  of  it  was  available  for  the  cur¬ 
rent  needs  of  the  Board,  exactly  as  is 
the  money  contributed  by  the  churches 
to  the  Boards  for  their  current  work 
from  year  to  year. 

The  sum  of  three  hundred  and  fif¬ 
teen  thousand  dollars  paid  on  account 
of  the  site,  could  have  been  used  by 
the  Boards  to  meet,  so  far  as  it  would 
have  done  so,  the  needs  of  the  Boards 
for  their  current  work,  just  as  the  sum 
of  one  hundred  and  twenty-five  thous¬ 
and  dollars,  forming  a  part  of  the 
same  legacies,  had  been  already  used. 
The  language  of  the  Boards  in  their 
statement  on  this  subject  is  as  follows: 

“  Of  her  (Mrs.  Stuart’s)  legacies,  the 
Boards  used  one  hundred  and  twenty-five 
thousand  dollars  in  current  work,  and  the 
remainder  has  been  availed  of  in  part  pay¬ 
ment  for  the  property  corner  of  20th  street 
and  Fifth  avenue.” 

DR.  ROBERTS  AND  THE  LEGACIES. 

One  of  the  secretaries  of  the  Home 
Mission  Board, — Dr.  Roberts, —  in 
urging  this  new  Mission  Home  project 
before  the  joint  committee  of  the  As¬ 
sembly  at  Saratoga,  stated  that  he  had 
had  several  conversations  with  Mrs. 
Stuart  before  her  death,  in  which  she 


stated  that  she  desired  to  see  a  per¬ 
manent  fund  created,  the  income  of 
which  would  pay  all  expenses,  and 
leave  the  entire  contributions  of  the 
Church  for  the  work,  and  which  would 
also  be  a  basis  of  credit  upon  which 
the  Boards  could  secure  such  tempo¬ 
rary  loans  as  were  necessary  to  carry 
on  the  work  before  the  contributions 
had  been  received  from  the  churches. 
How  Mrs.  Stuart’s  money,  having  been 
used  in  the  purchase  of  real  estate  on 
which  a  mortgage  for  one  million  dol¬ 
lars  has  been  given,  can  still  be  used 
as  a  basis  of  credit  it  is  difficult  to  see. 

The  Boards  in  their  statement  say : 
“When  this  question  (the  question  of 
providing  increased  accommodation 
for  the  Boards)  was  pending,  the  death 
of  Mrs.  R.  L.  Stuart  brought  to  the 
Boards  legacies  of  over  five  hundred 
thousand  dollars.  It  was  definitely 
known  that  Mrs.  Stuart  had  expressed 
a  desire  that  a  large  part  of  her  gift 
should  be  retained  as  a  permanent 
investment,  and  was  only  deterred 
from  fixing  the  amount  by  the  advice 
of  her  executors.” 

THE  WILL,  AND  IT  ALONE,  DETERMINES. 

No  such  statements  appear  in  the 
will  of  Mrs.  Stuart.  Nothing  is  said 
in  her  will  such  as  is  reported  by  Dr. 
Roberts  as  having  been  said  by  her, 
or  as  is  stated  in  the  circular  of  the 
Board.  The  law  does  not  permit  the 
plain  terms  of  a  last  will  and  testament 
to  be  varied  or  construed  by  oral  testi¬ 
mony.  No  rule  of  law  is  more  rigidly 
adhered  to  by  the  civil  courts  than 
this  one.  No  instrument  is  more 
sacredly  guarded  by  civil  courts  than 
the  last  will  and  testament  of  a  de¬ 
ceased  person.  The  law  will  not 


12 


permit  the  living  to  make  a  diff¬ 
erent  will  than  what  the  testator 
has  left  as  his  solemn  act.  The  will 
and  the  will  alone  can  be  looked  to 
for  the  intentions  and  purposes  of  the 
testator,  as  a  will  speaks  solely  from 
the  death  of  the  testator. 

Therefore,  whatever  may  be  said  as 
to  what  was  in  Mrs.  Stuart’s  mind 
before  her  death,  as  expressed  to 
others,  the  Boards  in  charge  of  her 
legacy,  and  all  persons  interested 
therein,  must  follow  strictly  the  terms 
of  her  will,  and  can  not  be  governed 
or  controlled  in  opposition  thereto  by 
any  wishes  expressed  by  her,  or  con¬ 
versations  had  with  her,  other  than 
are  set  out  in  her  last  will  and  testa¬ 
ment.  Our  Church  should  give  no 
uncertain  sound  on  this  subject,  so 
that  those  who  may  desire  to  make 
gifts  to  the  Church  by  will,  will  know 
that  it  is  the  policy  of  the  Church,  as 
it  is  the  invariable  policy  of  the  civil 
courts,  to  be  guided  by  the  will  and 
the  will  alone  in  the  administration  of 
legacies  given  to  it,  and  not  to  attempt 
to  enlarge  or  construe  its  terms  by  the 
oral  declarations  of  another. 

Where  money  is  left  without  any 
specific  direction  for  permanent  in¬ 
vestment,  the  presumption  is  that  it  is 
left  for  the  current  needs  of  the  Board 
to  which  it  is  given.  Where  a  sum  of 
money  left  to  the  Boards  is  too  large 
to  be  used  for  the  current  needs  of  the 
Boards  in  one  or  two  years,  the  Boards, 
of  necessity,  must  find  an  investment 
for  the  surplus  in  excess  of  the  actual 
needs  of  the  Boards.  But  where  the 
sum  is  not  in  excess  of  the  actual 
needs  of  the  Boards,  and  where,  as  in 
the  case  of  the  Boards  of  Home  and 


Foreign  Missions,  legacies  form  a  large 
part  of  its  income  for  its  current  needs, 
the  Boards  should  have  no  authority 
to  use  the  money  in  real  estate  invest¬ 
ments. 

HOW  MRS.  STUART’S  MONEY  IS  IN¬ 
VESTED. 

Assume  that  Mrs.  Stuart  had  di¬ 
rected  that  all  or  the  greater  part  of 
her  legacies  should  be  permanently 
invested,  and  the  income  alone  used 
for  the  purposes  of  the  Boards,  would 
that  have  justified  the  boards  in  in¬ 
vesting  the  $475,000  they  have  in¬ 
vested  in  a  second  mortgage,  as 
has  been  done,  and  that  too  where 
the  security  depends  upon  the  main¬ 
tenance  of  sufficient  fire  insurance  in 
responsible  companies?  Surely  Mrs. 
Stuart’s  legacies,  if  they  were  to  be 
permanently  invested  and  the  income 
alone  used,  should  have  been  invested 
as  a  first  mortage,  in  unencumbered 
real  estate,  where  the  principal  would 
be  reasonably  safe.  It  seems  clear 
to  us  that  the  magnificent  gifts  of 
Mrs.  Stuart  should  have  been  so  se¬ 
curely  invested — if  authority  existed 
for  their  investment,  instead  of  being 
used  for  the  payment  of  the  salaries 
of  the  home  and  foreign  missionaries, 
as  they  could  have  been  used,  and  as 
one  hundred  and  twenty-five  thous¬ 
and  dollars  of  the  legacies  were  used 
— that  the  principal  would  be  safe  for 
all  time,  and  producing  an  income  at 
least  equal  to  the  average  of  ordinary 
investments. 

As  the  situation  now  is,  the  Boards 
own  the  site  and  the  building,  with  a 
first  mortgage  for  a  million  of  dollars 
to  the  Seamans’  Bank,  and  the  four 
hundred  and  seventy-five  thousand 


dollars  of  Mrs.  Stuart’s  legacies, 
and  the  proceeds  of  the  sale  of  the 
Lenox  homestead,  which  will  amount 
to  from  three  to  four  hundred  thous¬ 
and  dollars,  will  form  a  part  of  that 
investment,  and  will  be  subject  to  this 
first  mortgage  of  a  million  dollars.  We 
have  thus  a  case  of  these  Boards 
taking  over  three  quarters  of  a  million 
of  dollars  of  the  funds  of  the  Church 
and  investing  them  in  a  real  estate 
investment  which  is  practically  a 
second  mortgage,  whose  security  de¬ 
pends  upon  the  constant  maintenance 
of  sufficient  fire  insurance  in  compa¬ 
nies  that  will  be  responsible  in  the 
event  of  loss. 

We  fail  to  see  anything  in  the  will 
of  Mrs.  Stuart,  or  even  in  the  state¬ 
ments  which  it  is  said  she  made 
touching  the  purpose  of  her  gifts, 
that  would  warrant  the  making  of 
such  an  investment  by  these  Boards 
of  her  money.  Is  it  in  the  power  of 
these  Boards,  under  the  laws  of  New 
York,  to  invest  any  of  the  permanent 
funds,  or  any  legacies  made  to  it  in 
second  mortgages,  or  in  real  estate 
encumbered  as  this  new  site  and  build¬ 
ing  are  encumbered  ?  What  assur¬ 
ance  have  the  donors  of  large  gifts  to 
these  Boards  that  the  money  given, 
even  for  permanent  investment,  will 
be  safeguarded  and  secured  for  the 
purposes  for  which  it  is  given,  if  the 
Boards  can  so  invest  and  so  speculate 
as  they  have  done  with  the  gifts  of 
Mrs.  Stuart,  and  as  they  propose  to 
do  with  the  gifts  from  the  Lenox 
heirs  ? 

Would  Robert  Lenox  Kennedy,  if 
he  had  been  alive,  have  approved  of 
the  sale  of  Fifth  Ave.,  and  Twelfth 


St.,  and  the  investment  of  the  pro¬ 
ceeds  of  the  sale  including  the  money 
he  gave  for  its  purchase,  in  the  new 
site  on  Twentieth  St.,  and  Fifth  Ave., 
subject  to  a  first  mortgage  of  a  million 
dollars? 

WHAT  SHOULD  BE  THE  POLICY  OF  THE 
CHURCH  IN  MAKING  PROVISION  FOR 
THE  PREMISES  NECESSARY  TO  CARRY 
ON  THE  WORK  OF  HER  RESPECTIVE 
AGENCIES? 

We  come  now  to  consider  what  is 
involved  in  the  policy  pursued  by  the 
Boards  of  Home  and  Foreign  Mis¬ 
sions  in  this  matter.  To  provide  in 
part  for  the  payment  for  the  site  and 
the  erection  of  the  building  on  Twen¬ 
tieth  street  and  Fifth  avenue,  it  is 
proposed  to  sell  the  present  premises 
on  Fifth  avenue  and  Twelfth  street. 
According  to  the  estimate  of  one  of 
the  secretaries  before  the  joint  com¬ 
mittee  of  the  General  Assembly  in 
1894,  it  is  expected  to  realize  between 
three  and  four  hundred  thousand  dol¬ 
lars  from  the  sale  of  the  present 
premises.  I11  the  event  that  the  latter 
sum  is  realized,  the  total  cash  invest¬ 
ment  of  the  Church’s  money  in  the 
new  premises  and  building  will  be 
eight  hundred  and  seventy-five  thous¬ 
and  dollars,  less  than  one-half  of  the 
estimated  total  cost  of  the  site 
and  building.  The  remainder  of  the 
money  necessary  to  erect  the  building 
and  pay  for  the  site  has  been  borrowed, 
and  a  mortgage  to  secure  one  million 
of  dollars  has  been  given  on  the 
property.  Before  the  building  can  be 
completed  so  as  to  pay  any  rental,  a 
period  of  at  least  two  years  will  have 
elapsed  from  April  15,  1893,  the  date 
of  the  purchase  of  the  site. 


—  14  — 


The  Boards  have  been  carrying  a 
loan  of  three  hundred  and  forty  thous¬ 
and  dollars,  at  4^  per  cent,  interest, 
on  account  of  the  purchase  of  the 
site.  This  loan  was  made  April  15, 
1893.  The  interest  on  this  loan  for 
two  years  will  be  thirty  thousand  six 
hundred  dollars.  In  addition  to  this 
loan,  the  three  hundred  and  fifteen 
thousand  dollars  given  by  Mrs. 
Stuart  is  invested  in  the  ground,  and 
has  been  so  invested  since  April  15, 
1893,  and  it  will  remain  unproduc¬ 
tive  until  the  net  rental  of  the  prop¬ 
erty  shall  produce  an  income.  If 
this  three  hundred  and  fifteen  thous¬ 
and  dollars  had  been  invested  May  1, 
1893,  at  five  per  cent,  it  would  have 
netted  an  income  to  the  two  Boards 
for  two  years  of  thirty-one  thousand, 
five  hundred  dollars. 

INTEREST  PAID  AND  INCOME  LOST. 

In  the  process  of  erecting  the  build¬ 
ing,  which  will  cover  a  period  of  from 
twelve  to  eighteen  months,  sums  ag¬ 
gregating  nearly  one  million  dollars 
will  have  to  be  borrowed  to  meet  pay¬ 
ments  to  contractors.  These  sums 
will  bear  interest  at  four  and  one-half 
per  cent.,  and  the  aggregate  interest 
on  the  sums  thus  borrowed  until  the 
completion  of  the  building,  will  be 
from  fifteen  to  twenty  thousand  dol¬ 
lars.  We  have  thus  an  aggregate 
interest  charge  or  loss  for  the  time 
between  the  purchase  of  the  site  and 
the  completion  of  the  building, 
amounting  to  at  least  seventy-five 
thousand  dollars.  Against  this  there 
is  an  alleged  credit,  as  per  statement, 
of  about  thirty-nine  thousand  dollars. 

Assume  that  the  building  is  ready 
for  occupancy  at  the  end  of  two 


years  from  the  purchase  of  the  site. 
Before  any  net  rental  can  be  de¬ 
rived,  a  sufficient  number  of  stores 
and  offices  must  be  rented,  the  income 
from  which  will  meet  the  entire  fixed 
charges  for  the  operation  of  the 
property, — taxes,  insurance,  elevator 
and  electric  light  plants,  janitors  and 
manager  of  building.  To  manage  such 
a  building,  secure  proper  tenants,  con¬ 
trol  servants  and  superintend  the 
operation  of  the  electric  lighting  and 
elevator  plant,  requires  a  high  order 
of  ability  which  will  command  a 
large  compensation.  All  these  fixed 
charges  will  have  to  be  met  before  a 
cent  can  be  applied  to  the  payment  of 
the  interest,  even  of  the  money  bor¬ 
rowed. 

Why  should  the  Presbyterian 
Church  adopt  a  policy  involving  the 

risks,  liabilities  and  losses  incident  to 
such  an  investment,  merely  for  the 

purpose  of  securing  premises  to  ac¬ 
commodate  its  secretaries  and  clerks 
in  the  distribution  of  the  funds  given 
by  the  Church  for  Home  and  Foreign 
Missions  ? 

Why  should  the  Church  sell  the 
present  historic  premises,  which  it 
owns  in  fee,  and  without  a  dollar  of 
debt,  and  invest  the  proceeds  in  a  lot 
and  building  mortgaged  for  one 
million  dollars  of  debt,  and  which 
debt,  it  is  possible,  may  compel  a  sale 
of  the  new  premises  ?  If  such  a  con¬ 
tingency  should  happen  the  Church 
would  be  without  any  home  for  its 
work. 

HOW  ARE  INTEREST  AND  DEBT  TO  BE 

PAID  ? 

It  is  difficult  to  see  how  the  Boards 
of  Home  and  Foreign  Missions  can 


—  i5 


purchase  this  site,  erect  this  building, 
and  pay  interest  on  the  loans,  without 
affecting  the  current  or  permanent 
funds,  or  both. 

Cost  of  site,  six  hundred  and  seventy 
thousand  dollars  ($670,000);  cost  of 
building,  one  million  and  eighty  thous¬ 
and  dollars  ($1,080,000);  total  cost  of 
site  and  building  one  million  seven  hun¬ 
dred  and  fifty  thousand  dollars,  which 
sum,  at  4^2  per  cent,  per  annum,  would 
net  seventy-eight  thousand,  seven 
hundred  and  fifty  dollars  ($78,750). 

The  building  when  completed,  as 
an  investment,  ought  to  net  at  least 
4  per  cent,  annually,  which  on  the 
cost  of  one  million,  seven  hundred  and 
fifty  thousand  dollars  ($1,750,000)  is 
seventy  thousand  dollars  ($70,000). 
Assume  that  of  the  $1,750,000,  the 
church  has  paid  from  Mrs.  Stuart’s 
legacies  and  sale  of  present  premises 
seven  hundred  and  fifty  thousand 
dollars  ($750,000),  leaving  charged 
as  a  loan  on  the  property,  one  million 
dollars.  How  is  this  loan  to  be  paid 
— principal  and  interest?  The  Boards 
in  their  printed  statement  speak  of  a 
sinking  fund  from  rentals  to  pay  prin¬ 
cipal  and  interest.  Before  one  dollar 
of  rental  can  be  fairly  applied  to  the 
sinking  fund  for  the  liquidation  of  the 
principal  of  the  debt  of  one  million 
dollars,  the  property,  after  paying  the 
entire  operating  expenses,  including 
taxes,  insurance,  operation  of  ele¬ 
vators,  electric  light,  heating  plants, 
etc.,  ought  to  net  at  least  seventy 
thousand  dollars  ($70,000)  per  annum, 
being  a  net  of  4  per  cent,  on  its  total 
cost.  All  this  is  to  be  done  when 
office  buildings  in  our  large  cities  are 
a  drug  on  the  market. 


Is  it  probable  that  this  new  mission 
building  will  net  seventy  thousand 
dollars  ($70,000)  per  annum — 4  per 
cent,  on  its  lowest  estimated  cost — 
even  when  crediting  the  income  with 
a  proper  rental  for  offices  occupied  by 
the  Boards  ?  This  it  must  do  to  meet 
the  lowest  probable  interest  charged 
on  the  loan  made  to  erect  it  and  to 
pay  the  like  rate  of  income  on  the 
money  of  the  Church  invested 
in  it. 

Assuming,  and  it  is  a  very  reason¬ 
able  assumption,  that  even  when  fairly 
well  rented,  it  may  only  net  forty-five 
thousand  dollars  ($45,000)  per  annum, 
this  will  only  pay  the  interest  on  the 
million  dollar  loan,  and  will  leave  no 
income  whatever  for  the  seven  hun¬ 
dred  and  fifty  thousand  dollars  ($750,- 
000)  of  the  money  of  the  Church  in¬ 
vested  in  the  site  and  building,  in 
which  event  this  sum  of  seven  hundred 
and  fifty  thousand  dollars  ($75o,ooo( 
so  invested  by  the  Church  would  be 
an  absolutely  profitless  investment. 

Suppose  again  that  the  net  rental  is 
less  than  forty-five  thousand  dollars 
($45,000),  and  not  able  to  pay  the 
interest  charged  on  the  million  dollars 
borrowed.  In  that  event,  the  load 
of  debt  will  increase,  while  the 
three-quarters  of  a  million  dollars  in¬ 
vested  by  the  Church  will  be  profit¬ 
less.  Thus  the  $475,000  given  by 
Mrs.  Stuart  for  the  work  of  Home 
and  Foreign  Missions,  may  prove 
utterly  profitless  to  those  causes. 

The  time  may  come  in  the  Church’s 
experience  of  such  an  investment 
that  nothing  will  remain  but  the 
sale  of  the  property  to  liquidate  the 
growing  debt — and  that  at  the  risk 


—  1 6  — 


of  the  loss  of  a  considerable  amount 
of  the  money  intrusted  to  the  Church 
by  Mrs.  Stuart  and  the  Lenox  heirs, 
as  well  as  the  loss  of  the  present 
historic  premises. 

In  the  event  of  the  depreciation 
in  the  next  fifty  years  of  the  prop¬ 
erty  on  Fifth  avenue  and  Twentieth 
street,  by  such  changes  in  value  as 
are  likely  to  occur  in  all  large  cities, 
who  is  to  make  good  the  loss  to  the 
Church?  What  security  have  donors 
to  the  various  Boards,  even  in  the 
case  of  permanent  investments,  that 
their  principal  will  be  kept  intact 
for  all  time  to  come,  where  they 
have  so  ordered  it,  if  the  Boards  can 
invest  that  principal,  or  any  part  of 
it,  in  the  purchase  of  real  estate  and 
the  erection  of  large  buildings,  with 
all  the  incidental  and  almost  inev¬ 
itable  losses  and  depreciation  which 
occur  in  the  course  of  years  in  all 
large  cities? 

We  do  not  propose  to  discuss 
here  whether  it  is  a  wise  policy  to 
have  the  Boards  of  Home  and  For¬ 
eign  Missions  permanently  located 
on  the  eastern  seaboard  of  this 
country.  Many  reasons  can  be 
given  why  the  Board  of  Home 
Missions  should  now  be  located 
nearer  the  center  of  the  country. 
What  we  desire  to  do  is  to  direct 
the  mind  of  the  Church  to  the  im¬ 
portance  of  adopting  a  permanent 


policy  with  regard  to  the  use  and 
investment  of  all  funds  committed 
to  the  keeping  of  its  respective 
Boards,  in  order  that  donors  may 
feel  that  security  which  the  Church 
ought  to  give  them  to  warrant  them 
in  using  their  wealth  for  the  purpose 
of  building  up  the  Kingdom  of  Jesus 
Christ  through  the  agency  of  our 
Church.  And  the  mind  of  the 
Church  should  be  directed  to  the 
further  question  of  how  far  such 
Boards  should  go  in  the  matter  of 
premises  for  their  work. 

We  submit,  that  engaging  in  in¬ 
vestments  of  such  magnitude  in  real 
estate  and  buildings,  involving  prob¬ 
able  depreciation  and  loss,  more  or 
less  inevitable,  and  liabilities  for 
negligence  in  their  management, 
may  not  commend  itself  to  those 
who  have  money  to  give  to  the 
various  causes  represented  by  the 
various  Boards  of  our  Church.  A 
withdrawal  of  such  a  large  principal 
on  such  a  small  net  income,  or  with¬ 
out  income,  is  a  questionable  policy, 
especially  in  the  case  of  Home  and 
Foreign  Missions,  which  should  lie 
so  close  to  the  heart  of  the  Church, 
and  which  should  be  mainly  carried 
on  by  regular  contributions  for  the 
current  needs  of  their  work. 

Yours  truly, 

Thos.  McDougall. 
Cincinnati,  O.,  March  12,  1895. 


